Showbiz Sandbox 365: As Cord-Cutting Grows, Media Company Revenue Falls

May 8, 2017


Media company stocks took a beating last week with a one-two punch from cord-cutting and a soft ad market. The first quarter of 2017 saw pay cable subscriptions fall by over 700,000 in the United States, the largest ever such loss. This has caused some concern that cord-cutting has accelerated just as major advertisers have started to spend less on marketing.

However, television networks may just be shifting where revenue comes from. Rather than huge carriage fees and ad rates tied to huge viewership, networks may now be earning money off licensing content to streaming video providers and selling ads on digital platforms. There’s just one problem; such digital platforms pay far less than networks used to getting.

Warner Music Group is also suffering from shrinking revenues thanks to consumer migration to streaming online services. The company signed a new licensing agreement with YouTube, but they aren’t happy with a deal they felt forced into accepting. We’ll explain why.

Of course, we also cover the week’s top entertainment news including the multiple “Game of Thrones” spin-offs planned by HBO, Harry Potter heads to Broadway and the return of “American Idol”.


Movies at the Palace

comScore Announces Official Worldwide Box Office Results for Weekend of May 7, 2017

Warner and YouTube Sign New Deal ‘Under Very Difficult Circumstances’

Warner Music Extends Deal With YouTube After ‘Months of Tough Negotiations’

Dinner with DiMaggio by by Rock Positano, John Positano, Francis Ford Coppola

Bill Clinton Teams With James Patterson to Write First Novel

‘American Idol’ May Return on ABC — But Fox Still in the Mix

‘American Idol’ Revival Poised to Move Forward at ABC

Gustavo Dudamel on Repression and Violence in Venezuela: ‘Enough is Enough’

Gustavo Dudamel Has Tried to Stay Out of Politics. Now, He’s Demanding Action in Venezuela

Dudamel Dedicates Concert to a Slain Student in Venezuela

Paramount’s China Partners Now Financing 30 Percent of Slate

Viacom Confirms Paramount’s China Slate Financing Deal ‘Moving Forward’

‘Harry Potter and the Cursed Child’ Sets Opening Night on Broadway

As Best-Seller Lists Are Cut, a Looming Disaster for Publishers

‘Game of Thrones’ Spinoffs in the Works at HBO

Television In The Snapchat Age: ‘This Is The Way Of The Future’

Millennium Films Faces Explosive Sex Harassment Suit

Former Top BET Exec Claims “Misogynistic Culture” in Discrimination Lawsuit

Former BET Executive Cites ‘Reckless and Inhumane’ Treatment in Wrongful Termination Lawsuit

Cord Cutting and a Soft Advertising Market Take a Toll On Media Stocks

Media Stocks Take a Hit as Cord-Cutting Fears Intensify


  • mgiltz

    Cord cutting! Falling ad revenue! Falling ratings! They’re ALL linked to one fact: people are watching TV in new ways but no one is capturing all those eyeballs. Do you really believe TV ratings are falling 30%? Everyone I know talks about TV and consumes it more than ever. On their phones and tablets, on demand and DVR and binge watching and more. The only thing they don’t do is sit down in front of the box on a certain night at a certain time and patiently watch a new show and all its ads in real time. Start measuring how people are really watching TV and “cord cutting” will be proven a myth and ad sales and ratings will climb back up.